Sovereign Wealth Funds Are Ready to Buy Bitcoin Says Saylor

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MicroStrategy’s bitcoin bull Michael Saylor announces his expectations for the next round of institutional buyers. What is surprising is that Saylor believes governments over sovereign wealth funds are next in line to buy.

Saylor believes Bitcoin is the smart game over gold

When it comes to maintaining prosperity, parallels are often drawn between gold and Bitcoin. However, Saylor points out that gold’s performance has been pathetic compared to Bitcoin over the past year. More long term.

This increases the awareness that Bitcoin and not gold is the place where money can be parked. Saylor expects existing hedge funds to increase their allocation in the coming year. Amazingly, however, he sees that sovereign wealth funds are among the major institutional players and invest in Bitcoin.

Before that, the biggest block for that was the lack of what Saylor calls $ 100 billion companies moving to Bitcoin. However, given the flood of institutional buyers, especially since the fourth quarter of 2020, this is no longer an issue.

“I think you see the existing hedge fund players double, triple …

I think it is inevitable that you will see the SWFs. You have to move, I mean, you have infinite money, and when you have infinite money and you see the asset class coming and you see that it’s the best performing asset class, your only problem is with other people do this with money.

So if I can point to $ 100 billion companies doing this, then I kind of want to get involved. “

Not everyone agrees with this thesis. Jim Rogers, chairman of Beeland Interests Inc., said governments have a vested interest in promoting their own central bank digital currencies versus bitcoin and other cryptocurrencies. That way, they keep full control of the money, and anything that interferes with that is not allowed to thrive.

“I believe that the virtual currency represented by Bitcoin will go down and eventually go to zero. This is a clear bubble and I don’t know the right price. Virtual currency is not an investment objective.

Many have come and gone, so we’ll see. “

MicroStrategy adds more BTC to the stash

Last week, Saylor’s MicroStrategy added another 205 Bitcoin to its treasury holdings. The company spent $ 10 million at an average price of $ 48,888.

Given its existing holdings, the company now holds 91,064 BTC for an average purchase price of $ 24,119. That adds up to an unrealized gain of $ 2.375 billion at today’s price.

MicroStrategy bought an additional ~ 205 bitcoins for ~ $ 10.0 million in cash at an average price of ~ $ 48,888 per #bitcoin. As of March 5th, 2021, we have purchased ~ 91,064 bitcoins for ~ 2.196 billion USD at an average price of ~ 24,119 USD per bitcoin. $ MSTRhttps: //t.co/a0BRd4Wy3r

– Michael Saylor (@michael_saylor) March 5, 2021

The last buy came when MicroStrategy’s share price, along with the rest of the tech sector, went into a sharp sell-off. Critics argue that under these circumstances, MicroStrategy is acting irresponsibly by sticking to its Bitcoin buying strategy.

Saylor replied, however, that the scope for Bitcoin was a breeze.

Bitcoin crossed above USD 50,000 again over the weekend, but today it has fallen 0.5% to a current price of USD 50.2,000.

Source: BTCUSD on TradingView.com